A Handbook on Forming Self Help Groups (SHGs)

This handbook is targeted at moderately educated local organizers. It:

• Provides a very lucid process map of self help group (SHG) formation and management in a question-answer format with illustrations;
• Explains the concept of self help followed by guidelines on entry into a village and the actual formation of SHGs;
• Provides a checklist as an aide for identifying poor families;
• Foretells the way an SHG evolves giving dynamics of meetings, membership, and leadership, so that the user is prepared for it;
• Reminds the user of communicating that the meetings are not for giving something and underscores the principles of self help.

The handbook enumerates the required rules and training areas for SHGs. It also enlists the books to be maintained by the SHGs, including minutes book, savings and loan register, weekly register and pass books. It also includes the most important functions of SHGs viz., savings and thrift, internal lending and discussing problems.

The handbook then highlights the process of bank linkage giving details of the following:

• Opening of savings bank account;
• Conduct of internal lending;
• Assessment of SHGs;
• Sanction of credit facility;
• Repayment;
• Required documents.

The handbook ends with the call for spreading the message of SHGs. It appends relevant instructions from RBI and NABARD, accounting, application, and agreement formats in the appendix.